A model for Australia's cost-effective renewable energy grid transformation

Sydney, Australia (SPX) May 06, 2024 - Researchers at The University of Adelaide have developed a model that delineates the most economical approach for transitioning Australia's electricity grid to full renewable energy. Led by Raheel Ahmed Shaikh, the team investigated various scenarios involving the integration of solar and wind energy across Australia's eastern and western grids. Their analysis incorporated elements like short-to-long-term energy storage and financial data to determine the most cost-effective mix of capacity.

Their findings suggest that fully renewable energy solutions would necessitate a substantial scale-up in both generation and storage capabilities. By linking the eastern and western grids, the model predicts a potential decrease in the need for generation capacity by 6% and a reduction in storage power capacity by 14%.

Wind energy would play a pivotal role in a renewable-only grid, providing 50-75% of the energy. Adequate storage is essential, with requirements reaching up to four times the current demand. This equates to 13 times the current storage power capacity and over 40 times the energy storage capacity, considering technologies like batteries, pumped hydro, and hydrogen.

Achieving an 82% renewable grid would demand less, only a fourfold increase in storage power capacity and a threefold rise in energy capacity. The researchers estimate that reaching a fully renewable grid would cost between A$130-150 billion, which is about 8-10% of Australia's GDP, assuming advancements and cost reductions in future technologies.

Research Report:Robust capital cost optimization of generation and multitimescale storage requirements for a 100% renewable Australian electricity grid